Standard Costs: Dana Corp's Operations
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Selected data relating to Dana Corp's operations for April are given below:
Number of units produced.... 500 Units
Number of actual direct labor hours worked... 1,400 Hours
Total actual direct labor cost.... $10, 850
The standard cost card indicates that 2.5 hours of direct labor time is allowed per unit, at a rate of $8 per hour.
a. Complete the following analysis of direct labor cost for the month:
Actual Hours of Input Actual Hours of Input Standard Hours allowed for
at the Actual Rate at the Standard Rate Output at the Standard Rate
(AH x AR) (AH x SR) (SH x SR)
_____________ _____________ _____________
_____________ _____________ _____________
_____________ _____________ _____________
b. Redo the above analysis of direct labor cost for the month, using the following formulas:
Labor rate variance = AH(AR - SR)
Labor efficiency variance = SR(AH - SH)
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Solution Summary
This solution provides step by step calculations for labor costs.
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a. Complete the following analysis of direct labor cost for the month:
Actual Hours of Input Actual Hours of Input Standard Hours allowed for
at the Actual Rate at the Standard Rate Output at the Standard Rate
(AH x AR) (AH x SR) (SH x ...
Purchase this Solution
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